CBO Dissects Earning Power of Government vs. Private Workers

One way presidential candidates have suggested to cut the federal deficit is by cutting the number of federal employees, saying that they are more highly paid than their private-sector counterparts. A recent study by the Congressional Budget Office shows that this is only partly true, and mostly at the lower, less-educated part of the spectrum. Not only that, but overall, the federal government demonstrates less of a spread from top to bottom than the private sector.

In a study called Comparing the Compensation of Federal and Private-Sector Employees, the CBO found that those without a college degree fared better as federal employees, since their pay was 36% higher than that of private-sector employees–particularly when it came to benefits. Those with advanced degrees such as doctorates, however, were generally better off in private industry, strictly from a monetary viewpoint–government pay was 18% lower than that of comparable individuals in the private sector.

For those in between those two classifications, it was not so easy to pin down the difference, after accounting for age, location, and other factors that could account for variations in pay. Overall, the CBO found that the federal government paid approximately 2% more overall in wages for its employees, taking into account the higher levels of pay for those at the lower end of the education spectrum and the lesser levels of pay for those with more specialized education.